This article addresses our US-regulated derivatives offering which is available to residents of the US, Canada, and most countries in the European Economic Area ("EEA"). You can learn more about Coinbase's Derivatives products on the Derivatives help page. For US customers, derivatives balances are held with Coinbase Financial Markets (CFM), which is a CFTC registered futures commission merchant and a member of the National Futures Association. Spot balances are managed by Coinbase Inc. (CBI). Funds held with CBI do not benefit from the CFTC's customer protection regime.
In the EEA, this service is available only to eligible customers through Coinbase Financial Services Europe Ltd. (CBFSE). Access is subject to completion of CBFSE’s onboarding and verification requirements, including identity checks and the appropriateness and target market assessments applicable under the current CBFSE framework; if those requirements are not met, access may be refused, limited or withdrawn. EEA Clients need to sign up for a Coinbase Luxembourg S.A. spot account in order to access CBFSE's offering. For Canadian customers, derivatives balances are held with Coinbase Financial Markets (CFM) under foreign dealer and futures commission merchant exemptions. Spot balances remain with Coinbase Canada Inc. (CBCA).
Available leverage when trading futures
In futures trading, leverage is calculated as the notional value of the contract (price of the underlying asset x contract multiplier) divided by the initial margin requirement. When you place an order, the estimated leverage is displayed on the order entry page and varies by contract and side (long or short).
It's important to note that leverage can amplify both profits and losses, meaning the risk of loss can exceed your initial investment.
Example calculation
You open a long position of 10 nano Bitcoin futures contracts at an entry price of $25,000. Each nano Bitcoin contract represents 0.01 Bitcoin.
The total notional value is $2,500 ($25,000 x 0.01 x 10).
If initial margin is 25% of notional value, the required margin is $625 ($2,500 x 0.25).
This trade provides 4x leverage ($2,500 ÷ $625).
Certain crypto contracts may qualify for margin offsets, enhancing leverage (example: holding long nano Bitcoin and short nano Ether positions).
Note: Examples are for illustrative purposes only. Fees and commissions may apply.
Maximum leverage
Your maximum leverage may adjust during overnight and weekend trading hours due to changing market conditions. The updated leverage is always displayed on the trade screens.
Maximum leverage is based on overnight margin requirements set by the clearinghouse, which considers asset volatility and risk modeling. These requirements may change over time. As such, margin is collected from customers at the end of the trading day to meet these requirements.
Increased leverage for futures day trading
You can opt for higher leverage when trading futures during weekday intraday periods, which run for 22 hours - from 6pm ET to 4pm ET the following day (Sunday evening through Friday afternoon, not available on weekends or holidays). During these hours, margin rates are lower than the standard overnight margin rates. This feature is designed for traders who open and close positions within this window. You can opt in or out in Coinbase Advanced Settings.
Futures positions held past 4pm ET are subject to higher overnight margin requirements (as required by clearinghouse rules), which must be met to avoid liquidation. Margin rates gradually return to overnight rates shortly after 4pm ET. At 3:30pm ET, if you’re at risk of liquidation when the overnight window begins, you’ll be notified via email and SMS (if you’ve opted into SMS for risk warnings).
Margin requirements, including intraday and overnight amounts, are visible in your account by selecting the Margin Ratio widget.
Note that intraday margin availability may be disabled without notice.
Understand your margin ratio
Your margin ratio measures how close your account is to liquidation. It compares your total equity (cash + unrealized PnL) against the margin required to maintain your positions.
Margin ratio = Maintenance margin required / Total equity × 100%
The higher your margin ratio percentage, the closer you are to liquidation:
Margin ratio | Status | What it means |
|---|---|---|
Below 50% | Healthy | Your equity is more than double the margin required. Comfortable buffer against liquidation. |
50% – 70% | Moderate | Adequate buffer, but large market moves could push you toward liquidation. |
70% – 85% | Elevated risk | Limited buffer. |
85% – 100% | High risk | Very close to liquidation. A small adverse price move or the overnight margin increase could trigger liquidation. |
100%+ | Liquidation territory | Your equity no longer covers maintenance margin. Coinbase may begin liquidating your positions. |
Important: A margin ratio of 80% during normal intraday hours does not guarantee safety going into the overnight session. When overnight margin rates take effect at 4:00 PM ET, the required margin increases. This can push your ratio above 100% with no price movement.
Prepare for the overnight margin transition
The shift from intraday (DIM) margin rates to overnight margin rates occurs shortly after 4:00 PM ET each trading day. This is the most common trigger for unexpected liquidations on Coinbase Futures.
What happens at the transition
Between 3:30 PM and 4:00 PM ET, margin rates gradually increase from intraday levels to overnight levels.
At 4:00 PM ET, full overnight margin rates apply. For many contracts, overnight margin requirements are significantly higher than intraday rates. For example, intraday may require 10% margin while overnight requires 20%, effectively cutting your leverage in half.
If your total equity does not cover the new, higher margin requirement, your account immediately enters liquidation territory.
Example
You hold a position during intraday hours with the following metrics at 3:55 PM ET:
Total equity: $10,000
Intraday maintenance margin: $8,200 (margin ratio: 82%)
At 4:02 PM ET, overnight rates take effect:
Total equity: $10,000 (unchanged — no price movement)
Overnight maintenance margin: $10,684 (18.7% increase)
New margin ratio: 106.8% → liquidation triggered
Your account went from 82% (moderate risk) to 106.8% (liquidation) with zero price movement — purely due to the margin rate transition.
Review this checklist before 4:00 PM ET
To reduce the risk of liquidation at the overnight transition:
Check your margin ratio — If you are above 70% during intraday hours, you are at risk when overnight rates apply.
Reduce position size — Close some contracts to lower your margin requirement before the transition.
Add funds — Deposit additional cash to your spot account. A debit card deposit is available immediately. This increases your equity and lowers your margin ratio.
Set a reminder — Coinbase sends a notification at 3:30 PM ET. If you use high leverage, plan ahead for the overnight transition.
"Insufficient funds" when placing a leveraged order
If you see an "Insufficient funds" error when attempting to place a derivatives order, it means your available buying power does not cover the initial margin requirement for the order you are trying to place.
Common causes
Position size too large for your balance — Reduce the number of contracts or add more cash to your account.
Existing positions consuming margin — Your open positions already require most of your available equity as margin collateral. Close some positions to free up buying power.
Overnight rates applied — If you are trading after 4 PM ET or on weekends, overnight margin rates are in effect. These require more margin per contract than intraday rates. The same order that worked at 2 PM ET may show "Insufficient funds" at 5 PM ET.
Intraday leverage temporarily unavailable — In rare cases, the intraday margin (DIM) system experiences a service interruption, causing the platform to apply overnight (full) margin rates during intraday hours. If the leverage label on the order screen shows a lower leverage than expected, this may be the cause. The issue is typically transient and resolves within minutes.
Resolve the error
Reduce the number of contracts in your order.
Close existing positions to free up margin.
Deposit additional funds (debit card for instant availability).
Wait until intraday hours if you are currently in the overnight session.
If the issue persists and the displayed margin rate is incorrect, contact Coinbase Support.
Intraday leverage unavailable
Intraday margin (DIM) availability may be disabled without notice during periods of extreme market volatility or system maintenance. When this happens:
The platform applies overnight margin rates to all orders and positions, even during normal intraday hours.
The leverage label on the order entry page reflects the reduced leverage.
Existing positions are not immediately liquidated, but your margin ratio increases because the required margin is now higher.
If your account cannot support the higher overnight margin requirement, you may face a margin call or liquidation.
To troubleshoot unavailable intraday leverage:
Check the leverage label on the Order Entry page.
If the label shows lower leverage than expected (for example, 5x instead of 10x), overnight rates are in effect.
Reduce your position size or add funds to meet the higher margin requirement.
Wait and try again if normal intraday hours should be in effect.
Contract limits
Your limits for futures contracts depend on your income and net worth qualifications. To increase your Position Limit Tier, you must certify that you meet other financial requirements.
Position limits are applied per instrument at the portfolio level and include both executed positions and open orders. These limits can change with market conditions. See Position limits for more details.
United States: Information provided is not investment advice. Funds held with Coinbase Inc. do not benefit from the CFTC’s customer protection regime. Access to the referenced financial products requires user eligibility, and may not be available in all jurisdictions. The risk of transacting in futures can be substantial and may not be suitable for everyone, possibly resulting in a loss of funds greater than the total amount of funds you have on deposit in your CFM account, together with any funds in your Coinbase Inc. account or any other accounts held with Coinbase affiliates. Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount. Please review the CFM Futures Risk Disclosure Statement for more information. Coinbase Financial Markets makes no representation on the suitability of information provided or to a particular financial product.
Coinbase Financial Markets is a member of National Futures Association (NFA) and is subject to NFA's regulatory oversight and examinations. However, NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets.
Assets held in your CFM futures account will be segregated from CFM’s own assets. All customer assets held by CFM will be subject to customer protection regulations of the CFTC, including CFTC Rule 1.20. In the unlikely event of CFM’s bankruptcy, your futures account is protected under CFTC regulations, including Part 190 rules, and specific provisions of the U.S. Bankruptcy Code.
Any funds transferred to your Coinbase Inc spot account won’t receive the preferential treatment afforded to funds held in a regulated futures account pursuant to CFTC's regulations and the U.S. Bankruptcy Code.
European Economic Area: The information contained on this page does not constitute marketing material or a solicitation to trade in the products or services described here.
Derivatives trading is available to eligible EEA customers through Coinbase Financial Services Europe Ltd. (CySEC License 374/19). In order to access derivatives, customers will need to pass through our standard assessment checks to determine their eligibility and suitability for this product.
Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. Derivatives are complex instruments and are not suitable for most investors. You should consider whether derivatives are suitable for you, and seek independent professional advice if needed. The value of your product can go up and down, and your capital is at risk. You could lose all invested capital.
The products and services offered here may however not be available in your country, or may not be offered by Coinbase Financial Services Europe Ltd.
For eligible EEA customers, negative balance protection applies. Learn more here. If your deposit is in EUR, it will first be converted to USDC, and then USDC will be converted to USD.